Calculate current years free cash flow

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Reference no: EM131067115

Firm A had net income of $30 milion last year. Deprecitation expense for year was $4million. Firm A spent $5 million last year in capital expenditures. If discount rate is 12% and firm A free cash flow is expected to grow 3% per year, calculate

1. current years free cash flow

2. fair value of firm A equity today

Reference no: EM131067115

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